Heritage Global Inc. Goodwill & Intangibles Disclosure
Note 9 – Intangible Assets and Goodwill
Intangible assets
The details of identifiable intangible assets as of December 31, 2025 and 2024 are shown below (in thousands except for lives):
Amortized & Unamortized Intangible Assets |
|
Original Life |
|
|
Remaining Life |
|
|
Carrying Value |
|
|
Amortization |
|
|
Carrying Value |
|
|
Amortization |
|
|
Carrying Value |
|
|||||||
Trade Name (HGP) |
|
14 |
|
|
|
— |
|
|
$ |
128 |
|
|
$ |
(128 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
Trade Name (ALT) |
|
20 |
|
|
|
15.7 |
|
|
|
575 |
|
|
|
(33 |
) |
|
|
542 |
|
|
|
(32 |
) |
|
|
510 |
|
|
Vendor Relationship (ALT) |
|
5 |
|
|
|
0.7 |
|
|
|
613 |
|
|
|
(230 |
) |
|
|
383 |
|
|
|
(230 |
) |
|
|
153 |
|
|
Unamortized Trade Name (NLEX) |
|
|
— |
|
|
|
— |
|
|
|
2,437 |
|
|
|
— |
|
|
|
2,437 |
|
|
|
— |
|
|
|
2,437 |
|
Total |
|
|
|
|
|
|
|
$ |
3,753 |
|
|
$ |
(391 |
) |
|
$ |
3,362 |
|
|
$ |
(262 |
) |
|
$ |
3,100 |
|
||
Amortization expense during 2025 and 2024 was $0.3 million and $0.4 million, respectively. No significant residual value is estimated for these intangible assets.
The estimated amortization expense during future years is shown below (in thousands):
Year |
|
Amount |
|
|
2026 |
|
$ |
186 |
|
2027 |
|
|
33 |
|
2028 |
|
|
33 |
|
2029 |
|
|
33 |
|
2030 |
|
|
33 |
|
Thereafter |
|
|
345 |
|
Total |
|
$ |
663 |
|
Goodwill
Goodwill consisted of the following at December 31, 2025 and 2024 (in thousands):
Acquisition |
|
December 31, 2025 |
|
|
December 31, 2024 |
|
||
ALT |
|
$ |
1,861 |
|
|
$ |
1,861 |
|
HGP |
|
|
2,041 |
|
|
|
2,041 |
|
NLEX |
|
|
3,544 |
|
|
|
3,544 |
|
Total goodwill |
|
$ |
7,446 |
|
|
$ |
7,446 |
|
The Company performed its annual impairment test for the year ended December 31, 2025 and 2024, and determined that no impairment charges were necessary.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 24, 2023 | |
| 2021 | Mar 17, 2022 | |
| 2020 | Mar 8, 2021 | |
| 2019 | Mar 9, 2020 | |
| 2018 | Mar 11, 2019 | |
| 2017 | Mar 13, 2018 | |
| 2016 | Mar 7, 2017 | |
| 2015 | Mar 17, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.